6th Annual Meeting of New Development Bank

News: Union Minister of Finance & Corporate Affairs and India’s Governor in New Development Bank (NDB), Smt. Nirmala Sitharaman attended the 6th Annual Meeting of Board of Governors of New Development Bank.

Highlights of the meeting:

  • Due to the current pandemic, this Annual Meeting of NDB was organized in virtual mode. This year’s Annual Meeting theme was “New Development Paradigms: The Evolution of Infrastructure” which is well aligned with its mandate.
  • The Finance Minister underscored India’s quick response to limit the impact of the pandemic and to undertake massive vaccination drives which are resulting in a ’V shape recovery’.
  • Sitharaman also highlighted that the world’s largest vaccine drive by India is under way and till date, , India has supplied 63.9 million doses of made-in-India COVID vaccine to 80 countries including 10.4 million doses of the vaccine  as a grant.
  • While acknowledging the Bank’s achievements and progress made over the last six years, Smt. Sitharaman highlighted NDB’s role in counter cyclical lending through a $10 billion Emergency Assistance Programme for supporting the member countries in fighting the COVID pandemic.
  • The Finance Minister also stressed the need for NDB to maintain and improve upon the ratings assigned by international rating agencies through adequate capitalisation, high quality governance and prudent management.
  • The Finance Minister encouraged the NDB to facilitate private sector participation, explore more innovative financing structures, discover co-financing opportunities with other MDBs, develop a pipeline of bankable projects, and promote environmental and social safeguards to enhance the sustainability of infrastructure, etc.
  • Highlighting the role of Development Financial Institutions (DFIs) in infrastructure financing, she mentioned that India is going to set up a new DFI with initial paid-up capital of around $3 billion with a lending target of $69 billion in next three years.
  • She also suggested NDB to develop a synergistic relationship with these institutions that share its development priorities to achieve greater results.

About New Development Bank:

  • It is a multilateral development bank jointly founded by the BRICS countries (Brazil, Russia, India, China and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014.
  • It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.
  • It is headquartered at Shanghai, China. In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
  • Objectives:
  • Fostering development of member countries.
  • Supporting economic growth.
  • Promoting competitiveness and facilitating job creation.
  • Building a knowledge sharing platform among developing countries.
  • To fulfill its purpose, the Bank supports public or private projects through loans, guarantees, equity participation and other financial instruments.
  • NDB has so far approved 14 projects in India for an amount of $4,183 million.